Railways Bill (Ninth sitting) Debate

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Department: Department for Transport
Jerome Mayhew Portrait Jerome Mayhew
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The clause sets out that the Secretary of State or Scottish Ministers’ power to give directions to GBR under clauses 7 or 8 may be exercised to give a direction relating to fares. That direction could cover the general level and structure of fares that the Secretary of State or Scottish Ministers expect to see on the passenger train services that GBR is running on their behalf. Likewise, the Secretary of State or Scottish Ministers can use the power in clauses 9 or 10 to issue guidance about the general level and structure of fares. Clause 33(3) also allows for provision about the general level and structure of fares to be set out in the public service contract under clause 31, which we have just debated. That allows Ministers to manage overall fare levels on their designated services.

Clause 33 centralises control of fares in the hands of the Secretary of State, allowing Ministers—not GBR—to determine the general level and structure of fares. That cuts directly against the idea that GBR will operate as an independent guiding or directing mind, and leaves the organisation responsible for outcomes that it does not control. The clause provides no statutory principles, tests or transparency requirements for how fare decisions should be taken—by the Secretary of State, presumably —and recent written parliamentary questions 84697, 86756 and 86754 underline the risk built into the model. In response to the questions, Ministers were unable to define what the “right” fare means, they were unable to say which fares will go up or down under GBR, and they confirmed that all future fare decisions remain entirely at ministerial discretion.

If Ministers are to retain that power, the Bill needs at least a duty to publish the assumptions, criteria and objectives underpinning fare setting, so that decisions can be assessed against passenger growth and affordability. At the moment we have none of that. The clause is in complete contradiction to the assertion in the explanatory notes that the Secretary of State’s directions

“are intended to be used as a responsive tool for necessary course correction, rather than as a proactive tool to set requirements on GBR”,

or in other words,

“they are a last resort”.

The clause says, “No, that’s absolute rubbish. We’re not doing that. We’re keeping in the hands of the Minister the power to guide and then direct and establish what the right fares are.”

Daniel Francis Portrait Daniel Francis (Bexleyheath and Crayford) (Lab)
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Does the shadow Minister accept that in recent years, when Transport for London was negotiating its fare settlements, the previous Government dictated the level of fares that should be charged not just for the congestion charge, but for passenger rail services? The Conservative Secretary of State and Government were doing that very thing in negotiations with Transport for London for rail passenger services in London.

Jerome Mayhew Portrait Jerome Mayhew
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I think we have to decide what GBR is going to be. Is it going to be a stand-alone organisation that is trying to run itself efficiently, providing value for money for the taxpayer and hopefully, one day, a check on the Secretary of State? Or is it going to be a creature of the Department for Transport that is told what to do and having its decisions second-guessed? This is a big decision that the Government have to take.

The clause creates a huge risk of stasis, as GBR gets bossed around and becomes a passive recipient of instructions from the Department for Transport. I worry that it is a recipe for future disaster, so I have questions for the Minister. What factors will the Secretary of State take into account when deciding the general level and structure of fares? Why is the Secretary of State in a better position to take those decisions than GBR is, given the objects that she has set the organisation? What additional information will she use that is not available to GBR? I will be grateful for the Minister’s answer. At least it is clear that any future failure of the railways will be down to the Department for Transport and the Secretary of State, not to GBR, since the power to guide and then direct and then set fares lies expressly with the Secretary of State.

My amendment 45 would remove the Secretary of State’s ability to give directions and set guidance as to the general level and structure of railway fares, thereby preventing ministerial intervention in how fares are set and making that decision separate from political influence. When considering amendment 45, Rail Forum said:

“We support this as it should be for GBR, as an arm’s length body and the directing mind, to determine fares not the Secretary of State.”

Amendment 148 in the name of the hon. Member for Didcot and Wantage would remove the power to give binding directions over fares—another version of our approach.

The clause as drafted is overreach by the Department for Transport and exactly the kind of micromanagement that the Minister claims will not happen. Why do we need these powers?

--- Later in debate ---
Olly Glover Portrait Olly Glover
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We understand and support the intent of the Conservative amendments on veterans, but I suppose the debate will get into what should be legislated for in discount schemes, as opposed to specified in other forms. It will be interesting to hear from the Minister why the Government have opted to put certain discount schemes in the Bill and not others. Hopefully, there is some clear logic, but we shall see.

Our new clause 51 would require the Secretary of State to make a travel fee exemption for journeys to and from Remembrance Sunday events for armed forces personnel, armed forces veterans and one representative of a deceased armed forces member across all GBR passenger services. The context is that there is currently an agreement in place for that travel fee exemption, which is agreed by the Secretary of State and the train operating companies. The new clause would simply formalise something that already happens, but would do so in the framework of GBR and ensure long-term certainty and consistency, national coverage across the GBR network and the inclusion of a representative of a deceased service member. At present, deceased personnel are often not represented at Remembrance events if a family member cannot afford the cost of travel. The new clause addresses that inequity. 

The new clause places an existing informal arrangement on a statutory footing and ensures consistency and fairness. The cost implications are limited and predictable, as the travel demand is concentrated around a single annual event and largely happens on that day. The new clause recognises the importance of remembrance for bereaved families and sends a clear message of respect and recognition for service and sacrifice.

On our new clause 59, I understand the shadow Minister’s points, but the intention is simply to reduce red tape and bureaucracy. This is about officers needing to use the train in the course of their duties. It is important that many of them do so, particularly those engaged in highly visible community policing. The new clause would simply reduce the red tape and bureaucracy of them needing to buy tickets, procure travel warrants and so on. It is not about travel to and from work, but about making sure they can easily use the network while on duty.

Daniel Francis Portrait Daniel Francis
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I will briefly respond to some of the comments that have been made. First, the Greater London Authority Act 1999 does not have many of these components. Yet the Mayor of London allows a number of discounts, including for veterans, care leavers, apprentices and people who are unemployed and seeking work. They are not on the face of that legislation, but those exemptions do exist, including for veterans, and I am sure the Minister will cover those points in due course. However, there is other legislation where that is the case. At no point in their 14 years did the previous Government attempt to amend that Act to provide that exemption for veterans, so that is the position that remains.

I remind Members of my interest as chair of the all-party parliamentary group for wheelchair users. Amendment 62 causes some concern with its reference to fares being “one third lower” because in many cases that would represent a fare increase for wheelchair users and blind passengers.

None Portrait Hon. Members
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Amendment 62 is in the next group.

Daniel Francis Portrait Daniel Francis
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Apologies, I will return to that in due course.

Rebecca Smith Portrait Rebecca Smith
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I echo what my hon. Friend the Member for Broadland and Fakenham said on amendments 46 to 50. I too am surprised that the Government are not seeking to enshrine the right to a veterans railcard on the face of the Bill. While it is laudable that they want to ensure that those long-fought-for discount fare schemes remain for young, elderly or disabled people, I believe that not making the veterans railcard a statutory discount is a backward step and will send a particularly strong message to that community, who we know are quite agitated by a lot of what is being done by this Government, particularly around the prosecution of veterans for previous conduct. Not to use this Bill as an opportunity to put this provision on the statute book is a retrograde step.

I want to pay tribute to the former Member for Plymouth Moor View, Johnny Mercer, who drove putting the veterans railcard in place in the first place through the work of the Office for Veterans’ Affairs. He said at the time that it underlined the “debt of gratitude” that we owe to our veterans. They are ultimately men and women who have fought hard for our country, and the opportunity to receive that discount in perpetuity—whether they have served one day or 100—is something that we should be proud of as a country and should seek to enshrine in legislation. The same goes for the opportunity for serving personnel to travel with their families.

I will be very surprised if the Government vote against the amendment: that would send a very clear message to our veterans community that they are valued more greatly by the Conservatives than by Labour. Although I am sure there is no ill intent behind the omission of the veterans railcard in the Bill, we have to think about the messaging and the political point that is being made. It would be relatively easy to put the veterans railcard in law so that it cannot be changed in the future, and I would support that. As has been said, the Bill does not prevent it from being added later, but I wonder why we are not seeking to enshrine it in law now.

--- Later in debate ---
Jerome Mayhew Portrait Jerome Mayhew
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Amendment 61 would remove GBR’s ability to set unrestricted conditions about discounted fares. The amendment probably goes too far, so I will treat is as a probing amendment to flush out what conditions the Minister anticipates will be imposed under subsection (3). Will the Minister undertake that the intention is to minimise constraints on discounts, to afford maximum advantage to the groups that discount schemes are in place to promote? I would be grateful if he could clarify the Government’s position on that.

Amendment 62 would ensure that discounted fares remained at one third lower than the price of a standard fare. That would give certainty to those currently using the variety of railcards mentioned above that their discount will remain the same. The Government claim that GBR will bring savings; all the amendment does is prevent discounted fares from costing more. If the Government do not support the amendment, they would be paving the way for GBR to reduce focus on the passenger and revert to the typical standard of a nationalised organisation, where you get what you are given and expected to be grateful for it.

New clause 13, in the name of the hon. Member for Didcot and Wantage, would ensure that the Secretary of State conducted a report into the potential benefits of a rail miles programme for passenger numbers. That is an idea—but in our view, it is not one that should be included in primary legislation. It is qualitatively different from discounts for veterans and young persons.

Daniel Francis Portrait Daniel Francis
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I again declare my interest as chair of the all-party parliamentary group for wheelchair users.

Amendment 62 appears to refer not to railcards but to all ticketing. As I have said, it would result in an increase for many tickets for wheelchair users and blind and visually impaired people. As the parent of a child who is a wheelchair user, I know that the discount on a ticket for wheelchair users is 75%, and it is the same for an adult day return. For blind and visually impaired users the discount on an adult day return is 50%.

Some discounts also apply to the carer or companion of the wheelchair user or blind or visually impaired passenger. That provision is not included in the Bill, yet the Opposition thought it was more important to table an amendment to introduce a discount for 26 to 30-year-olds than to table one on a discount for the carer of a wheelchair user or blind or visually impaired passenger. I anticipate that the Government will confirm that the discount remains for carers and companions, and in my mind that does not need to be included in the Bill. I certainly do not support amendment 62, as it would undo the current, more generous discount arrangements for wheelchair users and blind or visually impaired passengers, and cause an increase in their fare.

Jerome Mayhew Portrait Jerome Mayhew
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This may shock the Committee, but I listened carefully to the hon. Member for Bexleyheath and Crayford, and his expertise has exposed a lack of knowledge on my part. I was not aware that the discount in that circumstance was in excess of one third. Given that, I will not press the amendment to a vote. I am grateful for his contribution.